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Alarm.com Holdings, Inc. (ALRM) Sharpe Ratio: -0.75

ALRM's Sharpe Ratio of -0.75 indicates that for each unit of volatility, it generates -0.75 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Apr 1, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets.

ALRM Sharpe Ratio Rank

ALRM Sharpe Ratio Rank: 10.410
Concerning

ALRM ranks above 10.4% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating weak returns relative to total risk taken. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Weak risk-adjusted returns relative to category peers
  • Evaluate whether this holding aligns with your risk-return objectives
  • Consider reducing exposure or re-evaluating position size
  • Review higher-ranked alternatives in the same category

ALRM Sharpe Ratio Market Positioning

The chart shows ALRM's Sharpe Ratio relative to all stocks on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): -0.35 or lower
  • Yellow zone (middle 50%): -0.35 to 1.07
  • Green zone (top 25%): 1.07 or higher
  • Top 1%: 4.63+
  • Median: 0.26 — half of all investments score higher

How it compares to other similar stocks

The table compares Alarm.com Holdings, Inc.'s Sharpe Ratio with other stocks in the Software - Application industry across multiple time periods, showing how ALRM's risk-adjusted performance compares to industry peers.

Data shows 1-, 5-, and 10-year periods, plus each stock's all-time average, as of Apr 1, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
FRGEForge Global Holdings Inc3.98
FSLYFastly, Inc.3.37
DBDDiebold Nixdorf, Incorporated1.99
MKTWMarketWise, Inc.1.71
IDNIntellicheck, Inc.1.64
YOUClear Secure, Inc.1.54
JFU9F Inc.1.52
ADEAAdeia Inc1.49
NATLNCR Atleos Corporation1.47
PDFSPDF Solutions, Inc.1.36
ALRMAlarm.com Holdings, Inc.-0.75

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows ALRM's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when ALRM consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Explore ALRM risk-adjusted metrics in detail

Dive deeper into individual metrics with historical trends, benchmark comparisons, and performance across different time periods.

ALRM Sortino Ratio